With the April 15 tax deadline on Monday, a new tax scam has emerged in Missouri, the U.S. Internal Revenue Service warns.
The scam involves people posing as legitimate tax preparers and luring victims by promising large refunds from the federal government.
The scam often involves phony education credits and the earned income tax credit.
Michael Devine, a Missouri IRS spokesman, said people falling for the scam are learning that a side-effect of the fraud will cost them their federal benefits, ranging from certain veterans benefits to Social Security or low-income housing benefits.
Many of the scams hit hard on the theme of "free government money."
Devine said the scammers in Missouri may operate out of a store-front and may appear to be legitimate tax preparers who recently opened for business. The scammers lure victims in with street corner signs or flyers.